08-25-2010, 12:57 AM
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Too old to care
Industry Role:
Join Date: Jun 2001
Location: On the sofa, watching TV or doing my jigsaws.
Posts: 52,943
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Quote:
Originally Posted by TheDoc
Hahaha, really?
Let's see, affiliates only (no type-ins, in-house, exits, upsells, ex-member mails, return joins, etc) 100 affiliate trials, $2.99 trial that rebills at 29.95 monthly, and we'll limit it to 3 months. 50% trials convert with an upgrade script and well say 55% each month being that we're only looking at 3 months.
100 trials at $2.99 = $299
50 rebill at $29.95 = $1497
Trial Total: $1796
2nd month, 55% retain for 27.5 members = $823
3rd month, 55% retain for 15 members = $449
Rebill Total: $1272
Total: $3068
Affiliate Payout: $3000
Profit: $68
Again, that's taking in zero other factors and only 3 months.
Anyway, once that affiliate is gone it's all profits for the pps program. So 2% of the sales (2 people above) will retain for 9+ months, that's another $539.10 profit on two members. If you take the rebills left and just run them out at 50%, that's another $391 profit.
Basically, the above program could pay $40pps and still make profit and most 40pps programs charge more than $29.95 a month and they ALL make money with more than just the membership.
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This reply more than anything shows how little common sense there is in the industry. Maybe short term greed hides the obvious truth from peoples eyes.
Think about it for 5 minutes while I go get breakfast and reply to other threads.
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